A milestone judgement
We have recently won a huge victory in a tax litigation which was a complex of legal as well as evidence issues. The case( Apeal 25689-02-13 Rony Lerner v. Tax Authority (refers to three different matters ,i.e. trust formed abroad to hold shares of a company traded on the London Stock Market (AIM),the matter of an agreement with the Israeli Tax Authority (“TA”),whether it applies to the appellant, did the TA cancelled the agreement on founded merits, and when was the notice of cancellation delivered to the appellant’s representative .The third matter was the evaluation of the shares which were traded on the AIM market but with minor quantities and volume. The Tax Court (renowned honorable Judge Magen Altuvia) delivered a massive judgment which dealt with 2 of the issues ,and accepted and concurred with all of the appellant’s allegations and arguments. this is a tremendous success .Our firm represented the appellant. For more information please apply .
Taxation And Commercial Arbitrations
Our firm represents taxpayers in various proceedings before the Israeli tax authorities, including in matters concerning tax assessments and in court proceedings involving large-scale, highly complex tax appeals.
In addition, our firm represents clients in extensive commercial arbitrations, including against foreign corporations.
Litigation
Our firm represented a client in a commercial dispute in which the opposing party held bank guarantees. The appellate court accepted our arguments that while the realization of bank guarantees generally cannot be stayed, exceptions exist in special circumstances. These circumstances include, inter alia, extreme bad faith, as well as instances where the guarantees were initially issued for a specific purpose and their realization deviates from that original purpose. In the case at hand, the court accepted our position that this was one of those exceptional cases, as the guarantees were provided for a specific purpose under the agreements and their realization exceeded that scope. Consequently, the court prevented their realization.
Income Tax
Our firm represented a corporate client who received initial (Stage A) income tax assessments totaling approximately NIS 7 million. The dispute centered on three main issues. Two of these issues concerned convertible bonds—specifically, the classification of interest at the time of conversion into shares (whether it should be classified as interest income or as part of the capital investment). The second issue pertained to an Employee Stock Option Plan (ESOP), where the primary allegation was that the trustee failed to comply with internal directives issued by the Israel Tax Authority (ITA), alongside other claims and thereby the tax commissioner nullified the entitlement of the ESOP under Section 102 of the Tax ordinance. Following the filing of an objection to the tax assessment with the ITA, along with meetings and discussions with tax officials, our arguments were fully accepted. The original assessment was entirely nullified, resulting in zero tax liability. We extend our thanks to the company's CFO and to the accounting firm Deloitte for their collaboration.
